Compact Electric Construction Equipment Market Size, Share & Trends Analysis Report By Product (Forklift, Loader, Excavator, Aerial Work Platform (AWP)), By Ton (Below 5 Ton, 6 To 8 Ton, Above 8 Ton), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global compact electric construction equipment market was valued at USD 46.15 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.5% from 2022 to 2030. The growth in demand for compact electric construction equipment can be attributed to a noticeable increase in construction activities across the globe and stringent environmental regulations. The construction sector is witnessing rapid growth due to growing demand for affordable homes and increasing investment in production plant expansion activities.

Likewise, governments are focused on infrastructure development to support rapid development. Thus, an exponential increase in construction activities is increasing demand for compact construction equipment that can work in narrow spaces, are easy to transport, and have less maintenance & operational cost. This aspect is expected to augment the growth of the global compact electric construction equipment market.

Forklifts such as pallet jacks and stand-up riders are gaining more importance among warehouse owners as they are efficiently designed to lift heavy weight and can be flexible at greater heights. Warehouse owners' approach toward lowering the operational cost and increasing the transparency within the warehouse is anticipated to increase demand for compact electric construction equipment.

Rapid urbanization in developing countries is increasing the need for better infrastructure such as houses, schools, hospitals, stadiums, government buildings, and airports. For instance, in 2019, the Government of India announced an investment of USD 1.4 trillion for infrastructure projects during 2019 -2023; this signifies the upcoming demand for compact construction machinery in the country.

Moreover, renting construction equipment activities is witnessing high growth. Customers are now preferring to hire construction equipment to save costs associated with procuring and maintaining the equipment. Many construction equipment companies such as Komatsu Ltd, Mitsubishi Corporation, and Hyundai Construction Co., Ltd have started collaborating with rental companies and introducing new products to gain a higher market share. Thus, the high demand for electric excavators, loaders, and forklifts from the rental industry is expected to augment the industry’s growth.

Major players are inclining towards online sales channels to boost their sales activity which is expected to support the market growth. For instance, in November 2020, Volvo Group launched its new excavator for the Chinese market through an online platform which proved to be effective for product sales. Countries such as India and Japan are anticipated to witness rapid growth, attributed to rapid investment in urban infrastructure and the approach toward adoption of smart construction equipment to tackle rising pollution this is expected to increase demand for smart electric excavators.

The fluctuating raw material price and high cost of products are expected to challenge the global market growth. However, rapid advancements in battery technology, coupled with high investment for charging infrastructure development are factors expected to create new opportunities for players operating in the global compact electric construction equipment industry.

Product Insights

The forklift segment held the largest revenue share exceeding 65.1% in 2021 and is expected to continue its dominance over the forecast period. The Product 1 electric forklift is ideal for indoor, smooth floor factory applications. Product 1 electric forklifts can work in narrow spaces, are quieter, and create no emissions which are increasing their demand from various end-use industries.

The loader segment is expected to witness rapid growth over the forecast period due to the high demand for compact loaders from the construction sector. Also, the introduction of new products from players is expected to support the growth of the target segment. For instance, in January 2022, Doosan Bobcat announced the prototype of T7X an electric Bobcat T7X compact track loader. The newly launched T7X is fully electric and offers benefits such as eliminating the hydraulic systems, emissions, and vibrations.

Ton Insights

The ton segment is divided into below 5 tons, 6 to 8 tons, and 8 to 10 tons. The below 5-ton segment held the largest revenue share of around 38.4% in 2021. This can be attributed to the increasing demand for compact construction machinery to increase operational efficiency and lower the environmental impact.

The lightweight excavators and loaders are electrified faster than medium and large excavators. Thus, the manufacturers’ approach toward electrification of compact excavators is expected to gain momentum gradually over the forecast period.

The 8 to 10-ton segment is expected to witness significant growth in the global market due to high demand from end-use industries for compact electric excavators and loaders that have a high load carrying capacity.

Regional Insights

Europe accounted for over 40% of the revenue share in 2021 and is expected to grow steadily during the forecast period. The regional growth can be attributed to the surge in the adoption of zero-emission equipment, coupled with the increasing number of infrastructure projects in cities such as Oslo (Norway), Helsinki (Finland) London (U.K), Copenhagen (Denmark), Amsterdam (Netherlands), Stockholm, (Sweden). Additionally, stringent government regulations regarding environmental protection are expected to encourage the adoption of electric excavators.

Asia Pacific is expected to witness rapid growth during the forecast period, attributed to rapid infrastructure development activities along with strict government norms related to safeguarding the environment. For instance, the Chinese government signed the recent Regional Comprehensive Economic Partnership (RCEP) free trade agreement with Asia Pacific countries, including Japan, South Korea, Australia, and other smaller South-East Asian countries. The partnership is focused on developing the transportation infrastructure without comprising the environmental regulations.

Key Companies & Market Share Insights

The manufacturers are actively involved in product development activities, and their approach toward the introduction of new advanced products and acquiring major market share through mergers and acquisitions is expected to intensify the industry growth. For instance, in March 2022, Volvo CE, a construction equipment manufacturer announced the launch of a 2.5-ton battery electric compact excavator in the Asia market. The product launch is expected to help the company enhance company revenue. Also, in February 2022, the Takeuchi Mfg. Co., Ltd., a Japanese construction equipment manufacturer announced the launch of TB20e an electric compact excavator for North America. The product launch is expected to help the company strengthen its position in the North American industry. Some prominent players in the global compact electric construction equipment market include:

• Caterpillar

• JCB

• HAULOTTE GROUP

• Wacker Neuson SE

• Toyota Motor Corporation

• Hyster-Yale Group, Inc.

• SANY Group

• Volvo CE

• Hyundai CE

• Bobcat

Compact Electric Construction Equipment Market Report Scope

Global Compact Electric Construction Equipment Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global compact electric construction equipment market report based on product, ton, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Forklift

  • Loader

  • Excavator

    • Mini

    • Midi

  • AWP

    • Telehandler

    • Boom

    • Scissor

• Ton Outlook (Revenue, USD Million, 2018 - 2030)

  • Below 5 Ton

  • 6 to 8 Ton

  • 8 to 10 Ton

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Rest of the World